Tool

Take-Home Pay Calculator

Estimate Your Paycheck After Taxes

Your salary isn't your spending power. This calculator strips out 2026 federal tax, FICA and your state's real income tax to show the cash that actually lands in your bank — the number you should use when sizing a mortgage.

Your pay

Updates instantly as you type. 2026 federal brackets and FICA limits.

Annual salary
$
Pay frequency
Filing status
State

Pre-tax deductions

Lower your taxable income and your take-home — but raise your savings.

401(k) contribution6% of gross · $7,200/yr
0%25%
HSA contribution
$
per month
Health premium
$
per month, pre-tax
California · applied state tax
Progressive · marginal state rate 9.30%

State income tax uses a simplified resident-wage model for 2026. Local city taxes (e.g. NYC, Philadelphia) are not included.

Net take-home per paycheckBi-weekly (26/yr)
$3,044

From $4,615 gross per paycheck · effective tax rate 26.1%

Gross annual
$120,000
Net annual
$79,136
See what home this income can afford

Federal taxes

$24,454
Federal income tax$15,458
Marginal bracket 22% · taxable wages $94,300
Social Security (6.2%)$7,291
Capped at the 2026 wage base of $184,500.
Medicare (1.45%)$1,705

State tax

$6,810
California income tax$6,810
Progressive · marginal state rate 9.30%

Pre-tax deductions

$9,600
401(k) — 6% of gross$7,200
Reduces federal taxable income; still subject to FICA.
HSA contributions$0
Reduces both federal taxable income and FICA wages.
Health premiums$2,400
Section-125 cafeteria plan — reduces federal taxable income and FICA wages.
Estimates only. Uses projected 2026 federal brackets, FICA limits and a simplified per-state wage tax model. Local city taxes, credits and W-4 withholding allowances aren't modeled. Not tax advice.

What gets pulled out of your paycheck — and why it matters for buying a home

Lenders qualify you on gross income, but your real budget runs on net pay. Knowing the gap between the two is the difference between a comfortable mortgage and one that owns you.

1. Federal income tax (2026 brackets)

The U.S. uses progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. Only the dollars inside each band are taxed at that rate. The 2026 standard deduction is roughly $16,100 single / $32,200 married filing jointly / $24,150 head of household — those dollars are taxed at 0%.

2. FICA — Social Security + Medicare

Social Security: 6.2% of wages up to the 2026 wage base (~$184,500). Above that, nothing. Medicare: 1.45% on every dollar, no cap, plus an extra 0.9% on wages above $200,000 single / $250,000 married. FICA is not affected by your 401(k) contribution — only by HSA and pre-tax health premiums.

3. State income tax — the wild card

Nine states tax no wages at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Others use a flat rate (Pennsylvania 3.07%, Arizona 2.5%, Illinois 4.95%), and some run steeply progressive top rates (California 12.3%, Hawaii 11%, New York 10.9%, New Jersey 10.75%). Same salary, very different take-home.

4. Pre-tax benefits — savings disguised as deductions

401(k), HSA, and Section-125 health premiums reduce your taxable income before withholding. They lower your take-home but they aren't spent — they're savings or insurance. Treat them as a separate line item when budgeting for a house, not as a tax loss.

Why we built this into the home-affordability flow

Most online affordability calculators ask for gross annual income — which can overstate what you can comfortably spend by 25–35%. Run your real net pay here first, then carry it into the affordability calculator using the link in the results panel.

Why your paycheck is smaller than your salary

Almost every financial rule of thumb — including the ones lenders use to decide what house you can afford — is written against gross income. But gross income is a number you never actually touch. What lands in your account is what pays the mortgage, the groceries, and everything else. Understanding the gap between the two is the difference between a budget that works and one that looks fine on a spreadsheet and fails in practice.

The deductions, in the order they happen

Your gross pay gets reduced in a specific sequence, and the order matters. Pre-tax deductions come out first — traditional 401(k) contributions, HSA contributions, and most health insurance premiums. Because they're taken before income tax is calculated, they lower your taxable income, which means they cost you less than their face value. But they don't all work the same way: HSA contributions and Section 125 health premiums also reduce your FICA wages, while traditional 401(k) contributions do not — Social Security and Medicare are still calculated on that money. After income tax and FICA come state income tax, where it applies, and then any post-tax deductions like Roth contributions. Two people with identical salaries can take home noticeably different amounts purely because of how they've set up these first steps.

Your tax bracket doesn't mean what most people think

The single most common misunderstanding about income tax is that your bracket applies to your whole salary. It doesn't. The US uses a progressive system: each portion of your income is taxed at the rate for its own bracket. Moving into a higher bracket only affects the dollars above that threshold, not everything you earned. This is why a raise never leaves you with less money, despite the persistent myth. The rate that actually matters for budgeting is your effective rate — total tax divided by total income — which is always lower than your top bracket.

FICA is flat, and it stops

Social Security and Medicare come out of nearly every paycheck at fixed rates: Social Security at 6.2% of wages up to an annual cap that adjusts each year, and Medicare at 1.45% with no cap at all. High earners pay an additional Medicare surtax of 0.9% on wages above a threshold. The Social Security cap is worth knowing about if you're a high earner: once you cross it during the year, that deduction stops and your take-home pay jumps for the remaining paychecks. That's not a raise — it's the same annual income arriving unevenly, and budgeting around the higher late-year paychecks is a mistake.

Where you live can change your paycheck by thousands

State income tax is the largest source of variation between otherwise identical salaries. Some states have no income tax at all. Others use a flat rate. Others are progressive with rates that climb meaningfully at higher incomes. A few cities add their own local income tax on top. If you're comparing job offers in different states, or thinking about relocating, comparing gross salaries alone is misleading — the same offer can be worth substantially more or less depending on where the work happens. Bear in mind that low-income-tax states often compensate with higher property or sales taxes, so the full picture includes what you'll pay as a homeowner too.

The connection to what house you can afford

This is where take-home pay stops being trivia. Lenders qualify you using gross income and the 28/36 ratios, which means the maximum they'll approve is calculated against money you never see. If your effective tax rate and deductions take a large bite — a high-tax state, generous retirement contributions, family health premiums — the payment a lender considers acceptable can be a much larger share of your actual paycheck than the ratio implies. Running your real net pay against a prospective mortgage payment is the honest test, and it's often the one that reveals a comfortable-looking approval is tighter than it appears.

The levers you actually control

Most of your withholding is fixed by law, but a few things are genuinely in your hands. Increasing pre-tax retirement or HSA contributions lowers your taxable income now, though it also lowers your immediate take-home pay — you're trading present cash for future savings and a smaller tax bill. Adjusting your W-4 changes how much is withheld per paycheck; over-withholding produces a large refund, which feels good but means you lent the government money interest-free all year, while under-withholding risks a bill and possible penalties. The goal isn't the biggest refund. It's withholding that closely matches what you actually owe, so your money arrives when you can use it.

Take-Home Pay FAQ

Why is my take-home so much less than my salary?

Three layers come out before you see it: federal income tax (10–37% on a sliding scale), FICA payroll taxes (6.2% Social Security up to the wage base + 1.45% Medicare on everything), and state income tax (0% in TX/FL/WA, up to ~13% top rate in CA). Pre-tax deductions like 401(k), HSA and health premiums also reduce the cash that hits your account — but they're savings, not taxes.

Are these the actual 2026 numbers?

We use projected 2026 federal brackets, the projected $184,500 Social Security wage base, and 2026 estimated standard deductions. The IRS publishes final 2026 figures in late 2025; we update as soon as they're released. State brackets reflect each state's most recent rate schedule.

Does the 401(k) actually save me money on taxes?

Traditional (pre-tax) 401(k) contributions reduce your federal and state taxable income — so yes, you pay less income tax now. They do NOT reduce FICA (Social Security + Medicare). Roth 401(k) contributions are post-tax: same paycheck impact as no contribution from a tax standpoint, but tax-free withdrawals in retirement.

How are HSA and health premiums treated?

Both are usually run through a Section 125 cafeteria plan, which means they reduce BOTH your federal taxable income and your FICA wages. That's why HSA contributions are sometimes called 'triple tax-advantaged' — pre-tax in, tax-free growth, tax-free for qualified medical spend.

Why does the same income produce different take-home in different states?

Nine states have no income tax on wages (AK, FL, NV, NH, SD, TN, TX, WA, WY). Others range from low flat rates (PA 3.07%, AZ 2.5%) to steeply progressive (CA, NY, NJ, HI). On a $120,000 salary, the gap between Texas and California take-home can be over $7,000 a year — money that directly affects how much house you can afford.

What about local city taxes and other deductions?

We don't model city income taxes (NYC, Philadelphia, some Ohio/Michigan cities), SDI/SUI employee contributions where applicable, garnishments, or post-tax benefits. We also assume you take the standard deduction. For an exact paycheck, always check your pay stub or your employer's payroll preview.